Investor FAQs

We always put our investors first: Investors get paid first. Investors receive 100% of the income remaining after overhead until all the original investment is returned. Only after the investors’ original investment is returned does the company participate in the split of profits.

We put our money where our mouth is: The principals of The BoaVida Group always invest their own capital alongside investors, making a significant co-investment inside the fund.

We spread opportunity within the company: The company culture is built on sharing opportunity with employees. Key team members have opportunities to share in the profits of the projects in which they are directly involved, making investor success their success and giving them an opportunity to build personal wealth.

We understand the downside and don’t take unnecessary risks: The principals of The BoaVida Group invest heavily in the due diligence of each property. We purchase at the right price and allocate enough capital to stabilize properties, creating value within a five-year period.

We follow the 11th commandment: Do not take thyself too seriously

Typical Deal Structure

The BoaVida Group puts its investors first with fund investments typically following this structure:

Here’s a property from BoaVida’s portfolio:

Tara Estates Rochester, NH Acquired: January, 2023 Acquisition Price: $43,000,000 Spaces: 442 Target IRR: 12.3% Get more information now

The BoaVida 2022 Fund:

• $265.9 million asset value (as of April 2023)
• 4,561 total spaces owned by the Fund
• 38 parks in the Fund (one investment, many properties!)
• $130 million total equity raised in the Fund
• 14% targeted IRR

List of BoaVida 2022 Fund Properties

The BoaVida 2021 Fund:

• $229 million asset value (as of March 2022)
• 4,762 total spaces owned by the Fund
• 30 parks in the Fund (one investment, many properties!)
• $104 million total equity raised in the Fund
• 15% targeted IRR

List of BoaVida 2021 Fund Properties

The BoaVida 2020 Fund:

• $235.6 million asset value (as of February, 2021)
• 4,998 total spaces owned by the Fund
• 31 parks in the Fund (one investment, many properties!)
• $100 million total equity raised in the Fund
• 15% targeted IRR

List of BoaVida 2020 Fund Properties

The BoaVida MH/RV Fund 2019:

• $144.6 million asset value (as of February, 2020)
• 3,688 total spaces owned by the Fund
• 36 parks in the Fund (one investment, many properties!)
• $61 million total equity raised in the Fund
• 15% targeted IRR

List of BoaVida 2019 Fund Properties

Here’s a property from BoaVida’s portfolio:

Sierra Holiday Mobile Home Park
Mammoth Lake, CA
Acquired: December, 2022
Acquisition Price: $11,200,000
Spaces: 77
Target IRR: 13.3%

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The goals: Acquire a national portfolio of mobile home and RV properties with an initial asset value of $120 million and increase the asset value to $180 million within 6 years. Deliver an average investor IRR of 14% by buying right, adding value and operating properties long term.

• Targeted equity raise: $50 million
• Targeted asset value: $150 million
• Acquisition period: 12 months
• Targeted return of Capital: 72 Months

• Holding period: Cashflow in perpetuity
• Targeted investor IRR: 14%

• BoaVida projects investors will receive a cash return of approximately 4% during the first year while the initial stabilization process is undertaken.
• After the first year, BoaVida projects cash distributions will increase by 2% per year.
• BoaVida anticipates refinancing the assets by Year 6 with additional loan proceeds providing enough cash to fully return the initial equity investment plus the 5% preferred annual return.
• Then, with all investor capital returned and nothing at risk, investors will continue to receive income year after year

 

Here’s a property from BoaVida’s portfolio:

Columbia Sky Estates
Columbia, CA
Acquired: November, 2022
Acquisition Price: $10,550,000
Spaces: 145
Target IRR: 12.3%

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The tax write-off from mobile home parks far exceeds all other types of real estate investments including office, commercial and apartments.

• The Tax Cuts and Job Act of 2017 provides extremely favorable treatment for mobile home parks.
• 2020 Fund investors are expected to receive 110%-130% write-off on their investment in the first year.
• This tax shield benefits investors with passive income and can also be carried forward in subsequent years.
• The tax shield can also be used as a more favorable alternative to a 1031 Exchange.

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Bonus Depreciation as a tax shield or 1031 Exchange alternative for investors:

An investment of $3.5M can yield a $6,014,544 write-off in year 1
Approximately 75% of the purchase price for a mobile home park is infrastructure and is normally depreciated in 15 years. However, in 2023 80% of infrastructure can be depreciated in the first year.
The Tax Cuts and Jobs Act of 2017 allows an investor to take a bonus depreciation on 20-year assets in the first year of ownership and carry forward any loss not used.

Bonus depreciation will show as a loss on your K-1 and will count as a loss against other passive income. The amount of depreciation credit allocated to BoaVida Fund investors depends on several factors. However, for tax planning purposes, we anticipate fund investors will receive a passive loss in 2023 equal to 80% of their initial cash investment.

Here’s a property from BoaVida’s portfolio:

Possum Kingdom RV Resort & Marina
Graford, TX
Acquired: June, 2022
Acquisition Price: $9,950,000
Spaces: 118
Target IRR: 17.1%

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ACQUISITIONS

BoaVida’s acquisition team focuses on finding the right parks in the right markets that deliver great risk adjusted returns for investors.

• Deal Sourcing: BoaVida utilizes its extensive relationships with industry owners, operators, brokers and specialists to source the acquisition of assets
• Deal Underwriting/Evaluation: The acquisitions team evaluates hundreds of properties yearly to find desirable opportunities for the Fund
• Debt: Long-term loans come from multiple regional and national lenders that view BoaVida as a safe, secure company
• Competitive Advantage: BoaVida’s superior reputation and ability to pay cash gives the Fund a huge advantage when competing against multiple offers

STABILIZATION

BoaVida specializes in stabilizing parks within the first few years of ownership.

• Improve Infrastructure and Aesthetics: Replace signage, improve landscaping, update clubhouse, remove old homes, repair or replace roads, etc.
• Reduce Expenses: Install water meters, and pass through utility expenses at each property (water, sewer, electric, gas, trash)
• Increase Income: Repair and fill any vacant homes, fill empty spaces with brand new homes, raise rents to market rates, utilize sales team specialized in filling vacant spaces and renting or selling vacant homes

PROPERTY MANAGEMENT

BoaVida utilizes in-house property management and best-in-class third-party property management.

• Day-to-day responsibilities of rent collection and tenant interaction
• Operate properties to meet or exceed underwriting guidelines set forth during the purchase of the property
• Build community by providing safe, clean and friendly neighborhoods that create good value for people from all walks of life to grow and thrive

Here’s a property from BoaVida’s portfolio:

Sunset Mobile Home Park
Yuma, AZ
Acquired: August, 2022
Acquisition Price: $2,300,000
Spaces: 52
Target IRR: 14.3%

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Invest in the smartest (but maybe not the sexiest) real estate asset:

• Strong appreciation – smart!
• Strong in a down economy – smart!
• Strong tax advantages – smart!
• Strong cash-flow, 14% IRR – smartest!

Land Ownership: BoaVida is in the business of renting lots. This leads to significantly reduced maintenance expenses when compared to renting buildings.

Low Tenant Turnover: 5-7+ years of occupancy, compared to apartments at 1 year on average. The high cost of moving mobile homes leads to an extremely stable tenant base.

Demand for Affordable Housing: Nearly one-third of American households earn less than $34,000 per year. Households are considered cost-burdened when they spend more than 30% of their income on rent and utilities, which means monthly rents should be less than $875. The average manufactured housing lot rent is half this amount allowing for significant long-term stable rental growth.

Significant Tax Benefit: The 2017 Tax Cuts and Jobs Act created a unique opportunity for mobile home parks, allowing 75% of the acquisition price to be depreciated as bonus depreciation in the first year.

Highest Return of Any Real Estate Asset Class: “From the March 2009 stock-market bottom, shares of big mobile-home park owners Sun Communities Inc. and Equity LifeStyle Properties Inc. have returned a tech-like 4,137% and 1,186%, respectively, counting price changes and dividend payments.”
– Wall Street Journal, This Stock Has Returned 4,100% Since the Housing Crash. Dezember, R. (February 25, 2020)

Fighting the affordable housing shortage in the United States. By the numbers:

• 22 million people living in manufactured homes
• $35,000 is the average household income for owners/tenants in manufactured homes
• $935 average monthy cost for a lot plus home vs. $1,958 avg 2bd/2ba apartment rental
• New mobile homes can cost 50%-75% less than site-built homes
• 43,300 land-lease communities nationwide
• 4.3 million estimated home sites
• Only about 15 new communities built each year
• Apartment rents have increased 21.7% in the US in the past two years

Here’s a property from BoaVida’s portfolio:

Bonanza RV Park
Reno, NV
Acquired: August, 2021
Acquisition Price: $5,200,000
Spaces: 80
Target IRR: 15.02%

get more information now

Take the next step toward becoming a BoaVida investor. Learn more here.